BSBINN801: L'Oreal's Innovation and Sustainability Report

This report provides an overview of L'Oreal's innovation and sustainability strategies. It begins by introducing L'Oreal's core business and its commitment to 'Beauty for all'. The report then delves into the company's innovation strategies, including potential barriers, and their impact on the business, such as introducing products made from natural ingredients and collaborating with government bodies to promote environmental sustainability. It also explores the drivers, enablers, and conditions that support innovation within L'Oreal, including capital and revenue generation, open innovation, and trained human resources. Finally, the report proposes an innovative practice for L'Oreal, suggesting that the staff should use a minimum amount of paper in the office work and includes references to support the findings.

Innovation and
sustainability at
L’Oreal

About L’Oreal and the innovation
• The core business of L’Oreal S.A. is marketing superior
quality skincare products.
• The purpose of the company is expressed by the catch
line which reads, ‘Beauty for all’.
• The size of the business of the company spans around
more than twenty nations in the world.

Innovation strategies and monitoring
process
Implementation of an innovation plan Time(mon
ths)
The management of L'Oreal holds meeting
with the regional heads to form strategies
about the innovation
1
Regional heads hold meeting with their
subordinates to inform about the innovation
2
Management approves allocation of funds
towrads implementation of innovation
1
Acqyuisuition of resources to implement
innovation 1
Training of employees 3
Implementation of innovation 2
Monitoring of outcome by management 6
Taking further actions 6
Implementation of an
innovation plan
The management of
L'Oreal holds meeting
with the regional heads to
form strategies about the
innovation
Regional heads hold
meeting with their
subordinates to inform
about the innovation
Management approves
allocation of funds
towrads implementation
of innovation
Acqyuisuition of
resources to implement
innovation
Training of employees
Implementation of
innovation
Monitoring of outcome by
management
Taking further actions

Three potential barriers/risks to innovations
and strategies to minimize them
Risks or challenges Ways to deal with them
Financial factors The management of the concerned companies should hold meetings with the
investors and financial institutions for loans to make financial resources
available for the innovation.
Technological
challenges
The management of the companies concerned should adopt modern
technology
Environmental threats The companies should ensure that their innovations damage the environment.
Resistance from
employees
The management of the companies concerned should initiate organisational
changes as support strategies to support innovation adoption.

Effect of innovation on L’Oreal
• Innovative ideas and creative ideas ideas have enabled the company
to introduce new products aligned with the demands of the consumers
and provide them with superior quality of products.
• The innovative ideas which the company implements has enabled it
to introduce products made from natural ingredients like clay and
argon oil.
• Innovation has ushered on L’Oreal is that the company is collaborating
with government bodies in its host markets like Australia to promote
environmental sustainability within their respective economies.
• L’Oreal has gained the market position to encourage sustainability and
innovation among other companies as well.

Drivers, enablers and conditions at
L’Oreal
• Capital generation
• Revenue generation
• Open innovation
• Trained human resources

An Innovative practice to be
implemented in L’Oreal
• An innovative practice which can be implemented in
L’Oreal is that the staff would use minimum amount of
paper in the office work.

References
• Alexander, M. and Jaakkola, E., 2015. Customer engagement and value co-creation.
• Chang, W. and Taylor, S.A., 2016. The effectiveness of customer participation in new product development: A meta-analysis. Journal
of Marketing, 80(1), pp.47-64.
• Dangelico, R.M. and Vocalelli, D., 2017. “Green Marketing”: an analysis of definitions, strategy steps, and tools through a systematic
review of the literature. Journal of Cleaner production, 165, pp.1263-1279.
• Environment.gov.au. 2019. Environment.gov.au. [online] Available at: https://www.environment.gov.au/resource/local-government-
and-australian-environment-law [Accessed 11 Aug. 2019].
• Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee performance. Arabian Journal of Business and
Management Review, 5(5), pp.1-6.
• Khan, M.S., Khan, I., Qureshi, Q.A., Ismail, H.M., Rauf, H., Latif, A. and Tahir, M., 2015. The styles of leadership: A critical review. Public
Policy and Administration Research, 5(3), pp.87-92.
• Loreal-finance.com. 2019. Loreal-finance.com. [online] Available at: https://www.loreal-finance.com/en/annual-report-2017/consumer-
products [Accessed 11 Aug. 2019].
• Merrilees, B., 2016. Interactive brand experience pathways to customer-brand engagement and value co-creation. Journal of Product
& Brand Management, 25(5), pp.402-408.
• Nguyen, T.T., Mia, L., Winata, L. and Chong, V.K., 2017. Effect of transformational-leadership style and management control system
on managerial performance. Journal of Business Research, 70, pp.202-213.
• Terho, H., Eggert, A., Haas, A. and Ulaga, W., 2015. How sales strategy translates into performance: The role of salesperson customer
orientation and value-based selling. Industrial Marketing Management, 45, pp.12-21.
• Torres, E.N., Singh, D. and Robertson-Ring, A., 2015. Consumer reviews and the creation of booking transaction value: Lessons from
the hotel industry. International Journal of Hospitality Management, 50, pp.77-83.
• Vargas, M.I.R., 2015. Determinant factors for small business to achieve innovation, high performance and competitiveness:
organizational learning and leadership style. Procedia-Social and Behavioral Sciences, 169, pp.43-52.
• Wong, S.I. and Giessner, S.R., 2018. The thin line between empowering and laissez-faire leadership: An expectancy-match
perspective. Journal of Management, 44(2), pp.757-783.

Thank You